Walgreens to acquire Kerr Drugs

Published: Tuesday, September 10, 2013 at 2:24 p.m.

Last Modified: Tuesday, September 10, 2013 at 2:24 p.m.

Walgreen Co. and Kerr Drug, a privately held regional pharmacy chain in North Carolina, announced today that they have entered into a definitive agreement under which Walgreens would acquire certain assets of Kerr Drug’s retail drugstores and specialty pharmacy business.

Financial terms of the agreement were not disclosed, according to a joint news release from the two companies.

In fiscal year 2012, Kerr Drug’s retail drugstores and specialty pharmacy business recorded total sales of $381 million.

“The acquisition advances Walgreens' strategy to deliver the .Well Experience. for customers by expanding Walgreens presence in North Carolina, a fast-growing market, including into many smaller communities," the news release says.

The acquisition is structured as an asset transaction and includes Kerr Drug’s 76 retail drugstores and its specialty pharmacy business. The acquisition also includes a distribution center. Kerr Drug will retain ownership of its long-term care pharmacy business.

The transaction is subject to satisfaction of regulatory requirements and other conditions, and is expected to close sometime this year.

Until the acquisition closes, Kerr Drug and Walgreens will continue to operate separately. After closing, the acquired Kerr Drug retail drugstores will continue to operate under their current brand in the near term. Decisions will be made over time regarding the best, most effective way to integrate Kerr Drug’s retail drugstores and specialty pharmacy business with Walgreens operations, the release says.

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